The cryptocurrency market faced a significant downturn in the past 24 hours, with major players such as Bitcoin, Ethereum, and BNB witnessing substantial declines. Let’s delve into the key events that unfolded, contributing to this market correction.
Global Market Cap, Volume, and Dominance
The total crypto market volume in the last 24 hours was $50.8 billion, experiencing a 31.17% decrease. DeFi volume constituted 8.24% of the total crypto market volume at $4.18 billion, while stablecoins contributed $46.54 billion, representing 91.62%. Bitcoin dominance slightly increased to 50.44%.
The global cryptocurrency market cap experienced a 1.9% decline to approximately $1.55 trillion in the last 24 hours. Bitcoin’s market cap dipped to $777 billion, with a dominance of 50.39%. Other major cryptocurrencies like Ethereum, BNB, Polygon, Litecoin, Chainlink, Tron, Dogecoin, and Cardano witnessed varied declines ranging from 2% to over 5%.
Bitcoin’s Plunge Below $40,000
Bitcoin, the frontrunner in the crypto space, saw a dip below the $40,000 mark for the first time since the launch of the 11-spot Bitcoin exchange-traded fund (ETF) on January 11. The ease of entry and exit facilitated by Bitcoin ETFs led to increased selling pressure, prompting users to liquidate positions to secure profits or anticipate the next market rally.
Experts acknowledge the critical position of Bitcoin correcting at $39,700. However, a potential rebound is anticipated given the evident support at $38,500. However, if this support falters, the next level at $37,800 becomes crucial, with resistance at $40,350.
Bitcoin found support at the 100 EMA D, signaling a positive trend if sustained, according to CoinDCX Research Team. Ethereum, however, is at a crucial support juncture and is yet to display signs of recovery, with critical support levels identified at $2,170, $2,125, and $2,016.
As per the time of writing Bitcoin Price is trading sightly above 40k at $40,060.94.
Cryptocurrency Market Sentiment and Buying Activity
Despite the market’s recent challenges, there has been a 4-point increase in the “Greed and Fear Index,” reaching a score of 52. This indicates a favorable outlook, aligning with a surge in buying activity.
While Bitcoin struggled to surpass $40,000, Helium emerged as the biggest gainer, surging nearly 24%, while Blur stood as the top decliner with a notable drop of almost 8.09%.
The trending new cryptocurrencies are MANTA and HONK trading at $2.97 and $0.0095 respectively. MANTA has experienced an increase of 12.71% in the last 24hrs and 30.95% increase in the last week. HONK is also undergoing a bullish momentum with an increase of 55.26% in the last 24 hrs and $285.6% in the last week.
Bottomline
As the cryptocurrency market navigates through this turbulence, careful attention to support levels, market sentiment, and the performance of major players remains crucial for investors looking to understand the dynamics at play in these volatile times.